S.Amdt. 1478

1. Adds SEC. ____. ALLOWANCE OF DEDUCTION FOR QUALIFIED ENERGY MANAGEMENT DEVICES at the end of title III of division B

   Adds a section

   Inserted: SEC. ____. ALLOWANCE OF DEDUCTION FOR QUALIFIED ENERGY MANAGEMENT DEVICES.

   Inserted: (a) In General.--Part VI of subchapter B of chapter 1 (relating to itemized deductions for individuals and corporations), as amended by this Act, is amended by inserting after section 179C the following new section:

   Inserted: "SEC. 179D. DEDUCTION FOR QUALIFIED ENERGY MANAGEMENT DEVICES.

   Inserted: "(a) Allowance of Deduction.--In the case of a taxpayer who is a supplier of electric energy or a provider of electric energy services, there shall be allowed as a deduction an amount equal to the cost of each qualified energy management device placed in service during the taxable year.

   Inserted: "(b) Maximum Deduction.--The deduction allowed by this section with respect to each qualified energy management device shall not exceed $30.

   Inserted: "(c) Qualified Energy Management Device.--The term 'qualified energy management device' means any meter or metering device which is used by the taxpayer--

   Inserted: "(1) to measure and record electricity usage data on a time-differentiated basis in at least 4 separate time segments per day, and

   Inserted: "(2) to provide such data on at least a monthly basis to both consumers and the taxpayer.

   Inserted: "(d) Property Used Outside the United States Not Qualified.--No deduction shall be allowed under subsection (a) with respect to property referred to in section 50(b)(1) or with respect to the portion of the cost of any property taken into account under section 179.

   Inserted: "(e) Basis Reduction.--

   Inserted: "(1) In general.--For purposes of this subtitle, if a deduction is allowed under this section with respect to a qualified energy management device, the basis of such property shall be reduced by the amount of the deduction so allowed.

   Inserted: "(2) Ordinary income recapture.--For purposes of section 1245, the amount of the deduction allowable under subsection (a) with respect to any property that is of a character subject to the allowance for depreciation shall be treated as a deduction allowed for depreciation under section 167.

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   Inserted: "(f) Termination.--This section shall not apply to any qualified energy management device placed in service after December 31, 2007.".

   Inserted: (b) Conforming Amendments.--

   Inserted: (1) Section 263(a)(1), as amended by this Act, is amended by striking "or" at the end of subparagraph (I), by striking the period at the end of subparagraph (J) and inserting ", or", and by inserting after subparagraph (J) the following new subparagraph:

   Inserted: "(K) expenditures for which a deduction is allowed under section 179D.".

   Inserted: (2) Section 312(k)(3)(B), as amended by this Act, is amended by striking "or 179C" each place it appears in the heading and text and inserting "179C, or 179D".

   Inserted: (3) Section 1016(a), as amended by this Act, is amended by striking "and" at the end of paragraph (33), by striking the period at the end of paragraph (34) and inserting ", and", and by adding at the end the following new paragraph:

   Inserted: "(35) to the extent provided in section 179D(e)(1).".

   Inserted: (4) Section 1245(a), as amended by this Act, is amended by inserting "179D," after "179C," both places it appears in paragraphs (2)(C) and (3)(C).

   Inserted: (5) The table of contents for subpart B of part IV of subchapter A of chapter 1, as amended by this Act, is amended by inserting after the item relating to section 179C the following new item:

   Inserted: "Sec. 179D. Deduction for qualified energy management devices.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to qualified energy management devices placed in service after the date of the enactment of this Act, in taxable years ending after such date.

   Original wording

   At the end of title III of division B, insert the following:

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As printed